Goldman says SEC drops probe into its role in MBS deal

Source: Reuters

(Reuters) - The U.S. Securities and Exchange Commission has dropped an investigation into Goldman Sachs Group Inc's role in selling $1.3 billion worth of subprime mortgage securities, the investment bank said in a regulatory filing on Thursday.

In February, Goldman received a so-called Wells notice from SEC staff related to disclosures in the deal's offering documents. Such notices typically indicate the agency plans to take some kind of enforcement action, and gives firms a chance to respond.

On Monday, the SEC notified Goldman that the investigation had been closed and that it did not intend to recommend any enforcement action against the bank related to the offering, Goldman said in its quarterly 10-Q filing with the SEC.

The investment bank also lifted its estimate of "reasonably possible" legal losses to $3.4 billion from a previous estimate of $2.7 billion three months earlier. The estimate does not include potential losses from legal matters that are at an early stage or that are too difficult to predict.

7. Sick of it.

8. I'm confused just what is it that the SEC is supposed to do

becasue it really looks like they don't do much of anything other than to cover up crimes and make excuses for the criminals that commit them. How is it possible for a company to peddle something that they know is bad, to investors as a great investment, all the while betting that the same stock is worthless and this is legal?

12. Why do you think it has the nickname 'Government Sachs'....they are untouchable...

...and have a revolving door between their executive suites and D.C.....they make the rules they wind up breaking, so they re-write them...and leave the SEC to try and figure out what to do about it all...